Resolution Reached with Appraiser in Lawsuit which alleged violation of Fair Housing Act

San Rafael, CA – Fair Housing Advocates of Northern California (FHANC) and Ronald and Dominique Curtis have reached resolutions with appraiser Mehdi Mehdipour-Mossafer of a discrimination complaint alleging race and national origin discrimination in the home appraisal process. 

The case against the appraiser was settled for $90,000 and other non-monetary terms. Mr. Mehdipour-Mossafer agreed to not engage in any form of unlawful discrimination in the appraisal of residential real estate; to participate in FHANC’s training session regarding the history of segregation and real estate-related discrimination in the Bay Area; and to continue to abide by the Bureau of Real Estate Appraisers’ anti-bias education requirements. The settlement was reached after FHANC and the Curtises filed a complaint with the California Civil Rights Department (CRD) in January 2022.

The complaint alleged that the Curtises were the owners of a duplex located on Alcatraz Ave in North Oakland. They purchased their home in 2019, hoping to build equity and someday leave the home to their young daughter. Mr. Curtis, a real estate agent, is Black and Mrs. Curtis, an appraiser herself, is Latina. After purchasing the home, they made significant renovations and in April 2020, their home was appraised at $1,154,000.  

“We are pleased to have reached resolutions with the appraiser, AMC, and the lender,” said Caroline Peattie, Executive Director of FHANC. “We hope that the injunctive relief – that is, the non-monetary terms of the resolution – will have a positive impact on the appraisal industry and the community it serves.”

Federal Court Advances Landmark Housing Discrimination Case Against Deutsche Bank, Ocwen, and Altisource to Trial

The National Fair Housing Alliance (NFHA), Fair Housing Center of the Greater Palm Beaches (FHC) and 18 fair housing organizations have achieved a significant legal victory as a federal district court in Chicago denied the defendants’ motions for summary judgment in a critical 2018 housing discrimination lawsuit, National Fair Housing Alliance, et al. v. Deutsche Bank National Trust, et al. This decision now paves the way for the lawsuit against Deutsche Bank National Trust Company, Deutsche Bank Trust Company Americas, Ocwen Financial Corp., and Altisource Portfolio Solutions, Inc. to proceed to trial. Plaintiffs allege that these defendants engaged in discriminatory practices by failing to uphold their duty to maintain and market foreclosed properties in Black and Latino neighborhoods to the same standards as those in predominantly white areas, in violation of the federal Fair Housing Act (FHA).

The lawsuit, filed in February 2018 by NFHA, the FHC and 18 fair housing organizations, builds on an extensive multi-year investigation starting in 2010 and continuing through 2017 in the wake of the mortgage foreclosure crisis. Evidence summarized in the complaint reveals stark inequities. The investigation showed that homes in white neighborhoods were methodically maintained and marketed, while properties in Black and Latino neighborhoods were left in severe disrepair, contributing to safety hazards, declining property values, and worsening economic conditions in historically underserved communities. Plaintiffs presented expert evidence the Court has permitted to be presented at trial that these disparities in maintenance were attributable to neighborhood racial composition, not to non-racial factors, and that race played a statistically significant role in the differential treatment.

The 120+ page ruling, delivered by U.S. District Judge Manish S. Shah, (N.D. Illinois) allows Plaintiffs’ disparate treatment and disparate impact claims to move forward against all defendants. The Court cited evidence of mortgage servicers Ocwen and Altisource abdicating their obligations to maintain properties, and a host of policies that may be shown at trial to cause negative outcomes in communities of color, as compared to other neighborhoods. In turn, the Court held that trustees like Deutsche Bank can be held liable under the FHA for the discriminatory activities of their mortgage servicers. Judge Shah also recognized that all plaintiffs had established sufficient standing to pursue the FHA case in federal court, finding that the critical services that plaintiffs offer were “sufficient to demonstrate that defendants’ REO conduct perceptibly impaired the organizations’ core activities.”

“This is a pivotal decision—not only for NFHA and our partners but for underserved communities across the country that have long endured neglect and inequitable treatment,” said Lisa Rice, President and CEO of NFHA. “This case isn’t just about holding Deutsche Bank, Ocwen and Altisource accountable. It’s about beginning to repair some of the harm that continues to ripple through communities as a result of discriminatory housing practices. This decision carries the promise of hope for neighborhoods that were disproportionately targeted for predatory loans and negatively impacted by the foreclosure crisis. It’s a clear step forward in the fight for equity and justice.”

The full order can be viewed here.

FEDERAL JUDGE HALTS HUD AND DOGE TERMINATION OF GRANTS TO FIGHT HOUSING DISCRIMINATION

Relman Colfax and Fair Housing Advocates Ask Court to Halt HUD’s and DOGE’s Termination of Grants to Fight Housing Discrimination

Washington, D.C.—Relman Colfax and four members of the National Fair Housing Alliance (NFHA) announce the filing of a lawsuit against the U.S. Department of Housing and Urban Development (HUD) and Department of Government Efficiency (DOGE). This legal action follows HUD’s sudden and unlawful termination of grants disbursed under the Fair Housing Initiatives Program (FHIP). The termination of those grants jeopardizes over $30 million in critical, congressionally authorized funding for fair housing groups to fight housing discrimination and enforce fair housing laws throughout the country.

The lawsuit, filed in the United States District Court in the District of Massachusetts, is brought on behalf of a proposed class of more than 60 fair housing groups whose grants were abruptly terminated by HUD and DOGE on February 27, 2025. Plaintiffs have moved for a temporary restraining order (TRO).

Fair housing groups, funded by FHIP, have long served as the backbone of efforts to combat housing discrimination, enforcing the Fair Housing Act (FHA). These groups investigate housing discrimination complaints, enforce fair housing laws, assist individuals facing discrimination, educate communities about their rights, and collaborate with local governments to expand fair and affordable housing opportunities. FHIP grants–which originated from Congress’s recognition of the central role of fair housing organizations in combating housing discrimination–are a primary source of funding for fair housing groups.